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    Question

    Which of the following is not a feature of perfect

    competition?
    A Homogeneous product Correct Answer Incorrect Answer
    B Easy entry and exit in the long run Correct Answer Incorrect Answer
    C Low prices Correct Answer Incorrect Answer
    D Large number of buyers and sellers Correct Answer Incorrect Answer

    Solution

    Homogeneous products, easy entry/exit, and a large number of buyers and sellers are defining characteristics of perfect competition. "Low prices" is an outcome or a potential result of the competitive structure, not a defining feature of the market structure itself. Prices are determined by the market forces of supply and demand.

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